This course is part of the Financial Markets and Investment Strategy Specialization
Portfolio and Risk Management
Offered By
About this Course
4.4
134 ratings
This course teaches you the concepts of risk and expected return. This course presents an overview of the basic concepts and techniques used to construct financial portfolios. You will learn about the investment process and get a very good understanding of economic, industry, and company analyses. We will also look at understanding and interpreting major portfolio management and risk concepts. Through this course, you will discover the basic concepts of Modern Portfolio Theory.
In the second half of the course we explore the frameworks to measure investment performance, as well as the various measures of investment performance. Finally, you will learn how to measure performance of equity, bonds and hedge funds. After completing this course, you will be able to appreciate the details that go into the creation of investment portfolios.
Syllabus - What you will learn from this course
1
Section
Basics of Investments
The first module discusses the basics of investment process and the time value of money. The concept of time value of money is extended to value assets with cash flows. In the process, we develop shortcuts for valuing annuities and perpetuities. The student is then introduced to the concept of Risk and Return. The module ends with a discussion of Utility theory.
10 videos (Total 62 min), 3 readings, 1 quiz
10 videos
Investment Process4m
Investment Philosophies7m
Introduction to Time Value of Money7m
Ordinary Annuity7m
Compounding frequency and Effective Annual Rate7m
Annuity Due4m
Perpetuities and stock valuation3m
Expected returns and risk6m
Utility theory5m
3 readings
6 Different Investment Philosophies10m
Common Investment Strategies of Fund Managers10m
Utility theory and Attitude toward Risk10m
1 practice exercise
Week 1 Assessment20m
2
Section
Concept of risk and return
The second module introduces the student to the concept of portfolio math and the concept of diversification. The student is taught how to construct the investment opportunity set with risky assets and risk-free asset.The student is then introduced to the concept of Market portfolio and the Capital market line.
10 videos (Total 59 min), 4 readings, 1 quiz
10 videos
Capital Allocation6m
Risky portfolios6m
Diversification and efficient frontier5m
Two fund separation6m
Diversification revisited4m
Investment opportunity set with two risky assets and a risk-free asset6m
Investment opportunity set with three risky assets and a risk-free asset6m
The optimal allocation between risky and risk-free assets3m
The market portfolio and the capital market line5m
4 readings
The pros' guide to diversification10m
Diversification: How much is too much?10m
The 15-Stock Diversification Myth10m
Does the composition of the market portfolio really matter?10m
1 practice exercise
Week 2 - Assessment20m
3
Section
Understanding investments
This module introduces the CAPM model and the concept of Beta. The student is taught how to calculate the Beta of a security. The student is also introduced to arbitrage pricing theory.
10 videos (Total 52 min), 2 readings, 1 quiz
10 videos
The CAPM4m
Calculating the CAPM beta6m
The security market line4m
Equilibrium5m
Disequilibrium3m
Estimating beta from data6m
Miscellaneous topics on beta4m
Determinants of the market risk premium4m
Multifactor models5m
The arbitrage pricing theory6m
2 readings
Does the Capital Asset Pricing Model Work?10m
Multifactor Models10m
1 practice exercise
Week 3 - Assessment20m
4
Section
Security analysis
The main focus of this module is portfolio performance evaluation. You will learn equity valuation.
10 videos (Total 58 min), 3 readings, 1 quiz
10 videos
The arbitrage-free price6m
Commonly-used risk factors4m
Dividend discount models6m
The growth rate of dividends5m
Valuation based on comparable firms4m
The PEG ratio and other valuation multiples6m
Measuring portfolio or fund returns6m
Benchmarks for portfolio performance evaluation6m
Alternate performance measures4m
3 readings
The Challenge: How To Benchmark Your Investment Portfolio10m
Performance Measurement: The What, Why, and How of the Investment Management Process10m
The 101 ways to measure portfolio performance10m
1 practice exercise
Week 4 - Assessment20m
4.4
Top Reviews
By MK•Jun 30th 2017
Thank you very much Ramabhadran Thirumalai Sir\n\nThis course is very helpful for learners. explaining method and class slides all are well organised.\n\ncourse went smoothly.
By PV•Dec 8th 2017
This course is like a essential step towards learning financial management. A great course with broad coverage of topics offering in depth and connective understanding.
Instructor
Ramabhadran Thirumalai
Assistant ProfessorIndian School of Business
About Indian School of Business
The Indian School of Business has successfully put India on the global map of management education by nurturing young leaders with an understanding of developing economies and the society at large. Through innovations in curricula and pedagogy to reflect the shifting business landscape, the ISB is committed to providing the best venue for management education to meet the growing need to develop young leaders who can manage global challenges.
About the Financial Markets and Investment Strategy Specialization
The Investment Management Specialization teaches professional asset management of securities using portfolio management and behavioral aspects of finance. Specific topics include: an introduction to the basics of finance, how to evaluate risk and expected return, the behavioral aspect of investment strategy, and current trends.
Frequently Asked Questions
When will I have access to the lectures and assignments?
Once you enroll for a Certificate, you’ll have access to all videos, quizzes, and programming assignments (if applicable). Peer review assignments can only be submitted and reviewed once your session has begun. If you choose to explore the course without purchasing, you may not be able to access certain assignments.
What will I get if I subscribe to this Specialization?
When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.
What is the refund policy?
Is financial aid available?
More questions? Visit the Learner Help Center.
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